SECTION 3540-3546

(Moscone-Knox Professional Corporation Act)

3540.  A physician assistants corporation is a corporation which is
authorized to render professional services, as defined in Section
13401 of the Corporations Code, so long as that corporation and its
shareholders, officers, directors, and employees rendering
professional services who are certified physician assistants are in
compliance with the Moscone-Knox Professional Corporation Act, the
provisions of this article, and all other statutes and regulations
now or hereafter enacted or adopted pertaining to the corporation and
the conduct of its affairs.
   With respect to a physician assistants corporation, the
governmental agency referred to in the Moscone-Knox Professional
Corporation Act (commencing with Section 13400) of Division 3 of
Title 1 of the Corporations Code is the board.

3541.  It shall constitute unprofessional conduct and a violation of
this chapter for any person licensed under this chapter to violate,
attempt to violate, directly or indirectly, or assist in or abet the
violation of, or conspire to violate any provision or term of this
article, the Moscone-Knox Professional Corporation Act, or any
regulations duly adopted under those laws.

3542.  A physician assistant corporation shall not do or fail to do
any act the doing of which or the failure to do which would
constitute unprofessional conduct under any statute or regulation,
now or hereafter in effect. In the conduct of its practice, it shall
observe and be bound by these statutes and regulations to the same
extent as a person holding a license under this chapter.

3543.  The name of a physician assistant corporation and any name or
names under which it may render professional services shall contain
the words "physician assistant," and wording or abbreviations
denoting corporate existence.

3544.  Except as provided in Sections 13401.5 and 13403 of the
Corporations Code, each shareholder, director and officer of a
physician assistant corporation, except an assistant secretary and an
assistant treasurer, shall be a licensed person as defined in
Section 13401 of the Corporations Code.

3545.  The income of a physician assistant corporation attributable
to professional services rendered while a shareholder is a
disqualified person, as defined in Section 13401 of the Corporations
Code, shall not in any manner accrue to the benefit of the
shareholder or his or her shares in the physician assistant

3546.  The Medical Board of California may adopt and enforce
regulations to carry out the purposes and objectives of this article,
including regulations requiring (a) that the bylaws of a physician
assistant corporation shall include a provision whereby the capital
stock of the corporation owned by a disqualified person (as defined
in Section 13401 of the Corporations Code), or a deceased person,
shall be sold to the corporation or to the remaining shareholders of
the corporation within the time as the regulations may provide, and
(b) that a physician assistant corporation shall provide adequate
security by insurance or otherwise for claims against it by its
patients arising out of the rendering of professional services.